How to Adjust to a Large Fall in Commodity Prices /

Resource-rich countries have to manage highly volatile commodity revenues. In periods of revenue booms there is a tendency for large spending scale-ups. When facing large and persistent reductions in commodity prices, some of these countries will need to adjust their budgets to the new reality. In m...

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Detalles Bibliográficos
Autor principal: Medas, Paulo
Otros Autores: Danforth, Jeff, Salins, Veronique
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2016.
Colección:IMF How To Notes; How-To Note ; No. 2016/001
Acceso en línea:Full text available on IMF
Descripción
Sumario:Resource-rich countries have to manage highly volatile commodity revenues. In periods of revenue booms there is a tendency for large spending scale-ups. When facing large and persistent reductions in commodity prices, some of these countries will need to adjust their budgets to the new reality. In many cases, overall surpluses turn into large fiscal deficits and borrowing costs tend to rise with the fall in commodity prices. This note discusses how to undertake large fiscal adjustments, which often tend to be protracted and with long-lasting impacts on growth. Consequently, the note also highlights how to better prepare for future booms and busts in commodity prices.
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Descripción Física:1 online resource (18 pages)
Formato:Mode of access: Internet
ISSN:2522-7912
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students